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Oil prices trading down two percent on stronger US dollar
Published on March 19, 2010 by oilprices · No CommentsCrude oil prices dropped over two percent in afternoon trading on Friday, tumbling close to $80 a barrel as continued uncertainty about Greece’s economy helped lift the US dollar higher.
Light crude oil futures for April delivery dropped $2 to $80.20 a barrel on the NYMEX, while in London, Brent crude oil futures fell $1.84 to $79.64 a barrel on the ICE Futures Exchange.
The US dollar’s safe haven status grew again after Greece said it could not achieve the promised deficit cuts if its borrowing costs remained high, raising the stakes in its quest for the European Union to help tackle its debt crisis, and putting the European single currency under pressure once more.
Crude oil prices tend to fall with a stronger US dollar, as investors seek the safer haven of the US currency over that of commodities including oil futures.
Many analysts fear that the price of crude oil will continue to rise on trading speculation more than actual oil demand and, if crude oil crosses $90 a barrel, the US economy could be in for some trouble, especially if the US dollar sees a crisis, or looses it’s strength later in 2010.
Tags: crude, dollar, economy, Greece, oil, oil prices, prices, trading, US